Gangnam-style becomes most-viewed YouTube clip of all time: Psy's cut

Gangnam boost: shares in Psy's father's semiconductor co surged (Source: S&P)

Psy's "Gangnam Style" has just passed Justin Bieber's "Baby" to become the most-viewed YouTube clip of all time.

As NBR ONLINE types, Gangnam has 808 million views to Baby's 804 million by YouTube's official count.

(Overall Bieber maintains a healthy lead, with 3.9 billion views of various videos on his YouTube channel. Psy remains a one-hit wonder.)

But is there any point to this view-fest in the cut-and-paste world of free internet media?

Actually, yes, says entrepreneur Jason Calacanis in his newsletter.

Once a clip gains thousands of views, Google (which owns YouTube) shares ad revenue with the owner.

The amount is negotiable, and depends on volume. Rates are variously quoted at $US1.50 to $US5 CPM, but Mr Calacanis says partners tend to get a CPM of $US2 (that is, $US2 for every 1000 times the clip is viewed).

He estimates Psy would have received the standard $US2 for the first 200 million views (or $US400,000), then an $US8 CPM after that as the break-out nature of the hit allowed him to negotiate a higher rate.

An $US8 CPM would mean $800,000 for every 100 million views from 200 million up to the current 800 million - or another $US4.8 million, taking Psy's total YouTube haul to $US5 million and counting.

Go on, watch it again.

Gangnam style has also sold a reported 600,000+ on iTunes at $US1.29 a pop.

Apple takes 30% from any iTunes sale.

Assuming Psy gets the standard artist royalty of 12% on the remainder ($0.93) then he would pocket just under 11 cents per download - or around $US66,000.

A $US50 million kick?
The most bizarre, and lucrative, Gangnam Style revenue boost is an indirect one.

Psy's father, Park Won-ho, is chairman and controlling shareholder in DI Corp, a South Korean semiconductor company.

DI Corp, the semiconductor company of which 

"[Psy] has also worked his magic on his father's software firm, helping it double in value since singer and dancer Psy burst onto the global scene in July," Reuters said in a recent report.

D I Corp saw its market cap surge to 113.5 billion won, or $US101.29 million, although it has since pulled back (see S&P Capital IQ chart above).

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7816 -0.0035 -0.45%
AUD 0.8922 -0.0037 -0.41%
EUR 0.6178 -0.0038 -0.61%
GBP 0.4877 -0.0017 -0.35%
HKD 6.0617 -0.0283 -0.46%
JPY 84.5310 0.4090 0.49%

Commods

Commodity Price Change Time
Gold Index 1241.1 -7.450 2014-10-22T00:
Oil Brent 84.7 0.320 2014-10-22T00:
Oil Nymex 80.5 -1.960 2014-10-22T00:
Silver Index 17.2 -0.318 2014-10-22T00:

Indices

Symbol Open High Last %
NZX 50 5279.7 5299.9 5279.7 0.25%
NASDAQ 4427.4 4475.6 4382.9 1.60%
DAX 8873.5 9068.1 8940.1 1.20%
DJI 16468.1 16767.5 16614.8 1.30%
FTSE 6399.7 6430.3 6399.7 0.30%
HKSE 23296.0 23397.2 23404.0 -0.30%
NI225 15093.8 15232.5 15195.8 -0.37%